diff --git a/src/auth.cpp b/src/auth.cpp
index 684391654..9920e0e40 100644
--- a/src/auth.cpp
+++ b/src/auth.cpp
@@ -42,6 +42,8 @@ std::set<std::string> privsToSet(u64 privs)
 		s.insert("ban");
 	if(privs & PRIV_GIVE)
 		s.insert("give");
+	if(privs & PRIV_PASSWORD)
+		s.insert("password");
 	return s;
 }
 
@@ -64,6 +66,8 @@ std::string privsToString(u64 privs)
 		os<<"ban,";
 	if(privs & PRIV_GIVE)
 		os<<"give,";
+	if(privs & PRIV_PASSWORD)
+		os<<"password,";
 	if(os.tellp())
 	{
 		// Drop the trailing comma. (Why on earth can't
@@ -98,6 +102,8 @@ u64 stringToPrivs(std::string str)
 			privs |= PRIV_BAN;
 		else if(s == "give")
 			privs |= PRIV_GIVE;
+		else if(s == "password")
+			privs |= PRIV_PASSWORD;
 		else
 			return PRIV_INVALID;
 	}
diff --git a/src/auth.h b/src/auth.h
index 9939632a9..0ef94735f 100644
--- a/src/auth.h
+++ b/src/auth.h
@@ -41,6 +41,7 @@ const u64 PRIV_SHOUT = 32;           // Can broadcast chat messages to all
                                      // players
 const u64 PRIV_BAN = 64;             // Can ban players
 const u64 PRIV_GIVE = 128;             // Can give stuff
+const u64 PRIV_PASSWORD = 256;       // Can set other players' passwords
 
 // Default privileges - these can be overriden for new players using the
 // config option "default_privs" - however, this value still applies for
diff --git a/src/server.cpp b/src/server.cpp
index 5646c0ac9..660fdfea9 100644
--- a/src/server.cpp
+++ b/src/server.cpp
@@ -2171,20 +2171,33 @@ void Server::ProcessData(u8 *data, u32 datasize, u16 peer_id)
 				password[PASSWORD_SIZE-1] = 0;
 		}
 		
-		std::string checkpwd;
-		if(m_authmanager.exists(playername))
+		// Add player to auth manager
+		if(m_authmanager.exists(playername) == false)
 		{
-			checkpwd = m_authmanager.getPassword(playername);
+			std::wstring default_password =
+				narrow_to_wide(g_settings->get("default_password"));
+			std::string translated_default_password =
+				translatePassword(playername, default_password);
+
+			// If default_password is empty, allow any initial password
+			if (default_password.length() == 0)
+				translated_default_password = password;
+
+			infostream<<"Server: adding player "<<playername
+					<<" to auth manager"<<std::endl;
+			m_authmanager.add(playername);
+			m_authmanager.setPassword(playername, translated_default_password);
+			m_authmanager.setPrivs(playername,
+					stringToPrivs(g_settings->get("default_privs")));
+			m_authmanager.save();
 		}
-		else
-		{
-			checkpwd = g_settings->get("default_password");
-		}
-		
+
+		std::string checkpwd = m_authmanager.getPassword(playername);
+
 		/*infostream<<"Server: Client gave password '"<<password
 				<<"', the correct one is '"<<checkpwd<<"'"<<std::endl;*/
-		
-		if(password != checkpwd && m_authmanager.exists(playername))
+
+		if(password != checkpwd)
 		{
 			infostream<<"Server: peer_id="<<peer_id
 					<<": supplied invalid password for "
@@ -2193,23 +2206,11 @@ void Server::ProcessData(u8 *data, u32 datasize, u16 peer_id)
 			return;
 		}
 		
-		// Add player to auth manager
-		if(m_authmanager.exists(playername) == false)
-		{
-			infostream<<"Server: adding player "<<playername
-					<<" to auth manager"<<std::endl;
-			m_authmanager.add(playername);
-			m_authmanager.setPassword(playername, checkpwd);
-			m_authmanager.setPrivs(playername,
-					stringToPrivs(g_settings->get("default_privs")));
-			m_authmanager.save();
-		}
-		
 		// Enforce user limit.
 		// Don't enforce for users that have some admin right
 		if(m_clients.size() >= g_settings->getU16("max_users") &&
 				(m_authmanager.getPrivs(playername)
-					& (PRIV_SERVER|PRIV_BAN|PRIV_PRIVS)) == 0 &&
+					& (PRIV_SERVER|PRIV_BAN|PRIV_PRIVS|PRIV_PASSWORD)) == 0 &&
 				playername != g_settings->get("name"))
 		{
 			SendAccessDenied(m_con, peer_id, L"Too many users.");
@@ -2217,7 +2218,7 @@ void Server::ProcessData(u8 *data, u32 datasize, u16 peer_id)
 		}
 
 		// Get player
-		Player *player = emergePlayer(playername, password, peer_id);
+		Player *player = emergePlayer(playername, peer_id);
 
 		// If failed, cancel
 		if(player == NULL)
@@ -4678,6 +4679,22 @@ std::wstring Server::getStatusString()
 	return os.str();
 }
 
+void Server::setPlayerPassword(const std::string &name, const std::wstring &password)
+{
+	// Add player to auth manager
+	if(m_authmanager.exists(name) == false)
+	{
+		infostream<<"Server: adding player "<<name
+				<<" to auth manager"<<std::endl;
+		m_authmanager.add(name);
+		m_authmanager.setPrivs(name,
+			stringToPrivs(g_settings->get("default_privs")));
+	}
+	// Change password and save
+	m_authmanager.setPassword(name, translatePassword(name, password));
+	m_authmanager.save();
+}
+
 // Saves g_settings to configpath given at initialization
 void Server::saveConfig()
 {
@@ -4813,7 +4830,7 @@ v3f findSpawnPos(ServerMap &map)
 	return intToFloat(nodepos, BS);
 }
 
-Player *Server::emergePlayer(const char *name, const char *password, u16 peer_id)
+Player *Server::emergePlayer(const char *name, u16 peer_id)
 {
 	/*
 		Try to get an existing player
@@ -4859,12 +4876,6 @@ Player *Server::emergePlayer(const char *name, const char *password, u16 peer_id
 		Create a new player
 	*/
 	{
-		// Add authentication stuff
-		m_authmanager.add(name);
-		m_authmanager.setPassword(name, password);
-		m_authmanager.setPrivs(name,
-				stringToPrivs(g_settings->get("default_privs")));
-
 		/* Set player position */
 		
 		infostream<<"Server: Finding spawn place for player \""
diff --git a/src/server.h b/src/server.h
index 98c4f65d6..618b05d99 100644
--- a/src/server.h
+++ b/src/server.h
@@ -456,6 +456,10 @@ public:
 			dstream<<"WARNING: Auth not found for "<<name<<std::endl;
 		}
 	}
+
+	// Changes a player's password, password must be given as plaintext
+	// If the player doesn't exist, a new entry is added to the auth manager
+	void setPlayerPassword(const std::string &name, const std::wstring &password);
 	
 	// Saves g_settings to configpath given at initialization
 	void saveConfig();
@@ -591,12 +595,11 @@ private:
 	/*
 		Get a player from memory or creates one.
 		If player is already connected, return NULL
-		The password is not checked here - it is only used to
-		set the password if a new player is created.
+		Does not verify/modify auth info and password.
 
 		Call with env and con locked.
 	*/
-	Player *emergePlayer(const char *name, const char *password, u16 peer_id);
+	Player *emergePlayer(const char *name, u16 peer_id);
 	
 	// Locks environment and connection by its own
 	struct PeerChange;
diff --git a/src/servercommand.cpp b/src/servercommand.cpp
index afd704fd3..d971b18a0 100644
--- a/src/servercommand.cpp
+++ b/src/servercommand.cpp
@@ -281,6 +281,54 @@ void cmd_banunban(std::wostringstream &os, ServerCommandContext *ctx)
 	}
 }
 
+void cmd_setclearpassword(std::wostringstream &os,
+	ServerCommandContext *ctx)
+{
+	if((ctx->privs & PRIV_PASSWORD) == 0)
+	{
+		os<<L"-!- You don't have permission to do that";
+		return;
+	}
+
+	std::string playername;
+	std::wstring password;
+
+	if(ctx->parms[0] == L"setpassword")
+	{
+		if(ctx->parms.size() != 3)
+		{
+			os<<L"-!- Missing parameter";
+			return;
+		}
+
+		playername = wide_to_narrow(ctx->parms[1]);
+		password = ctx->parms[2];
+
+		actionstream<<ctx->player->getName()<<" sets password of "
+			<<playername<<std::endl;
+	}
+	else
+	{
+		// clearpassword
+
+		if(ctx->parms.size() != 2)
+		{
+			os<<L"-!- Missing parameter";
+			return;
+		}
+
+		playername = wide_to_narrow(ctx->parms[1]);
+		password = L"";
+
+		actionstream<<ctx->player->getName()<<" clears password of"
+			<<playername<<std::endl;
+	}
+
+	ctx->server->setPlayerPassword(playername, password);
+
+	os<<L"-!- Password change for "<<narrow_to_wide(playername)<<" successful";
+}
+
 void cmd_clearobjects(std::wostringstream &os,
 	ServerCommandContext *ctx)
 {
@@ -322,9 +370,9 @@ std::wstring processServerCommand(ServerCommandContext *ctx)
 	if(ctx->parms.size() == 0 || ctx->parms[0] == L"help")
 	{
 		os<<L"-!- Available commands: ";
-		os<<L"status privs ";
+		os<<L"me status privs";
 		if(privs & PRIV_SERVER)
-			os<<L"shutdown setting ";
+			os<<L" shutdown setting clearobjects";
 		if(privs & PRIV_SETTIME)
 			os<<L" time";
 		if(privs & PRIV_TELEPORT)
@@ -333,6 +381,8 @@ std::wstring processServerCommand(ServerCommandContext *ctx)
 			os<<L" grant revoke";
 		if(privs & PRIV_BAN)
 			os<<L" ban unban";
+		if(privs & PRIV_PASSWORD)
+			os<<L" setpassword clearpassword";
 	}
 	else if(ctx->parms[0] == L"status")
 		cmd_status(os, ctx);
@@ -350,6 +400,8 @@ std::wstring processServerCommand(ServerCommandContext *ctx)
 		cmd_teleport(os, ctx);
 	else if(ctx->parms[0] == L"ban" || ctx->parms[0] == L"unban")
 		cmd_banunban(os, ctx);
+	else if(ctx->parms[0] == L"setpassword" || ctx->parms[0] == L"clearpassword")
+		cmd_setclearpassword(os, ctx);
 	else if(ctx->parms[0] == L"me")
 		cmd_me(os, ctx);
 	else if(ctx->parms[0] == L"clearobjects")